Step 1: create a services business plan
The first step to starting a services business isΒ creating a business plan. A business plan is simple: it outlines various components of your company, including how youβll measure success, who youβll hire, what services youβll offer, what your target market is and so forth. With a thorough business plan written out, not only will you have a clear understanding of how youβll run your business, youβll potentially be able to attract investors, too.
There are a few essential components that you should include in your business plan, according toΒ Business Queensland. These components are as follows:
Executive summary
The executive summary acts as the introduction to your professional services business idea. It includes your mission statement, a brief description of the services youβll provide and your growth plans.
Business profile
The business profile section allows you to go more in-depth with the intricacies of your professional services business. As you describe your company, go over the services youβll offer, the customers youβll serve, and the competitive advantages of your business. This section should also explain why you chose your companyβs specific location, any employeesβ expertise, and your companyβs strengths. This section should also have basic information, such as the location, number of employees, and potential clients or potential customers you plan to serve.
Market analysis
Understanding your target market is essential when it comes to opening a professional services business. The last thing you want is to open an accounting firm, for example, in a town that already has dozens. Through market analysis, youβll also be able to understand your competitorsβ strengths and weaknesses better. Market research also allows you to explain what your business will do better and why it will succeed.
Legal and risk management plan
If youβre looking for investors, theyβre going to want to know how your company will be organised. This section will have information about your business name registration and required licences and permits. You should also cover your businessβs legal structure, whether it be a partnership, company or sole tradership.
Management and personnel plan
This section allows you to go over human resource policies, training and the role of each employee. For example, if youβre opening a digital marketing agency, you can list content writers, SEOs, paid search analysts, team managers and so forth.
Operating plan
This is the place to explain the nitty-gritty of the services your business will offer. As a professional services business, youβll have a team of experts who sell their knowledge, whether theyβre lawyers, consultants or accountants. In this section, explain in detail how your services will work, the prices based on a comprehensive cost analysis and how youβll expand your services. For example, if youβre looking to open an architecture firm, provide blueprints for various buildings, such as commercial and residential structures, along with landscaping blueprints.
Marketing plan
Having aΒ marketing planΒ is essential when it comes to growing a business. In this section, go over your marketing and sales campaigns and how you plan to attract and retain customers, garner referrals and ensure repeat business. You can also explain whether you plan to have an in-house marketing team or work with a PR/marketing firm.
Finance plan
Starting a professional services business can be costly. Many service providers find they need to look for investors to get their company up and running. TheΒ finance planΒ section gives you the perfect opportunity to tell investors how much funding youβll need. Youβll also need to thoroughly describe how you plan to use any financing you secure so investors know where their moneyβs going. This section should also include your projectedΒ cash flowΒ and funding and repayment arrangements; before investors put faith and capital into your company, they want reassurance that it will succeed. By making financial projections, you can give investors peace of mind knowing your company will grow.
Action plan
Your action plan is a short (approximately one-page) description of the concrete steps you need to take and the specific resources you need in order to achieve your goals for your business; include a time frame for completing these steps.
Your business plan is worth the effort
Writing a business plan takes a lot of time and thoughtful planningβit can feel like a full-time job. However, with an in-depth business plan, youβll have a clear picture of how to start your professional services business and where to take it. To ensure your business plan is up to par, you can also get outside help. For example, your bookkeeper can help you map your financial projections, and a PR firm can help you draft your marketing campaigns. Upfront work can result in a long-term successful business, and business plans are a key element of entrepreneurship.
For more information, read ourΒ guide to building a business plan.
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